Hyperscale Data (GPUS) Registration filing summary

Company overview and business model

• Engages in Bitcoin mining using purpose-built computers, both directly and via mining pools, receiving rewards and transaction fees in Bitcoin.

• Holds and manages digital assets through a regulated custodian, converting mined Bitcoin to fiat currency as needed for operations.

• Focuses on owning and operating mining facilities with access to low-cost, renewable power, primarily in Michigan and Montana.

• Strategy emphasizes mining efficiency, smart growth, and expansion of facility capacity, with a commitment to environmental responsibility.

Financial performance and metrics

• As of June 30, 2024, held 2.6 Bitcoins valued at $0.2 million, representing 0.1% of total assets of $270.8 million.

• Mining operations generated $2.8 million net income and $19.9 million revenue for the six months ended June 30, 2024, compared to a $0.5 million net loss and $8.5 million revenue for the same period in 2023.

• For the year ended December 31, 2023, reported a net loss of $2.6 million and revenue of $33.1 million, compared to a $91.6 million net loss and $16.7 million revenue in 2022.

• Net cost of power ranged from $42 to $62 per MWh in late 2023; expected blended power cost is $55 per MWh after relocating miners to Montana.

• Depreciation accounts for a significant portion of costs, with $18.3 million in depreciation and amortization in 2023.

Use of proceeds and capital allocation

• Investing in facility expansion, including $7 million estimated for Montana Facilities and ongoing improvements at the Michigan Facility.

• Large expenditures planned in 2024 to transition Michigan Facility to support HPC and AI applications, potentially increasing short-term losses.

• Cash generated from operations used to fund a portion of capital expenditures.